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City of Tempe ULI Aztap TECHNICAL ASSISTANCE PANEL REPORT City of Tempe ULI AzTAP June 2019 Contents 8 About the Smith Innovation Hub 10 Process and Assignment 11 Stakeholder Input 14 Panel Discussion Overview Planning & Design... Finding the “Place” Building Market Potential Transportation and Connectivity Finance and Incentives Priorities and Next Steps 28 About the Panel 32 Appendix ULI Arizona District Council The Urban Land Institute is a 501(c)(3) non-profit research and education organization supported by its members. Founded in 1936, the Institute has members in 95 countries worldwide, representing the entire spectrum of land use and real estate development disciplines working in private enterprise and public service. The mission of the Urban Land Institute is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. The ULI Arizona District Council was formed in the early 1980s, as a direct response to the need for educational forums and events at a local level. ULI Arizona brings public and private sector leaders together to share and exchange ideas, information, and experiences to shape the way communities grow. About ULI TAPs The ULI Arizona Technical Assistance Panel (AzTAP) Program is a service offered by ULI Arizona to assist Arizona municipalities, counties, regions, and nonprofits in the preliminary study of complex land use planning, development, and redevelopment issues. Drawing from a seasoned professional membership base, AzTAPs provide objective and responsible guidance on a variety of land use and real estate strategic decisions ranging from site-specific projects to public policy questions. AzTAP was initiated by the ULI Arizona District Council in 2003 as an extension of the time-tested national ULI Advisory Services Program that was established in 1947 with proven success for its comprehensive, pragmatic approach to solving land use challenges. Technical assistance interdisciplinary panel teams are carefully chosen for their specific knowledge and the holistic lens that they provide to help resolve local issues. Communities gain valuable insight and direction from highly qualified industry professionals who volunteer their time. Professionals who bring their expertise to bear also receive an intimate understanding of the unique development opportunities and challenges facing communities. The interaction among panel experts, local communities, and residents strengthens the community fabric and builds opportunities for strong public and private sector collaboration to promote thriving Arizona communities. The focus and scope of issues defined by the local sponsoring community make each TAP unique, so the approach is intentionally flexible to tailor it to the specific needs presented. Past ULI Arizona TAP reports are available to view and download at www.arizona.uli.org. PANELISTS Steve Lindley Doug Craig, PLA, ASLA Mark Stratz Panel Moderator Vice President, RVi Planning + Senior Vice President + City Executive Director, Cushman Landscape Architecture Leader, Transwestern & Wakefield Kevin Olson Alisa Timm Mark Bauer Partner, Steptoe Regional Director of Managing Director and Management, Ryan Co-Leader, JLL Global Data Companies Michael Pfeffer, AIA Center Solutions Vice President of Architecture, Related Midwest Manjula Vaz Terry Benelli Member, Gammage & Executive Director, LISC Burnham Phoenix AZTAP COMMITTEE Cameron Carter Tom Hester Candace Rasauro Partner, Rose Law Group Associate Vice President, Director, Jokake Construction Urban Design Director, Gulf/ George Cole Southwest Region, AECOM Lance Ross, Emeritus Director, Fennemore Craig, PC President, Ross Property Amy Malloy, Chair Advisors Doug Craig Managing Principal, Evolve Vice President, Ventures Hannah Sanders RVi Planning + Landscape Business Development, AME Architecture Chelsea McCaw Landscaping Planner, RVi Planning + Mark Davis, Vice Chair Landscape Architecture Judie Scalise Owner, 48 Development Principal, ESI Corporation Company Spalding Olmsted President/CEO, Kim Shapiro Leslie Dornfeld The Spalding Group Vice President, Skanska Principal, PLAN-et Debbie Parkins Meagan Snyder William Francis Business Development, Director of Business William Francis, RLA Western Technologies, Inc. Development, EPS Group Consultant Kelly Patton Jon Vlaming Angie Grendahl Senior Economic Development Community Development Retail Development Manager, Consultant, APS Director, City of Eloy Thompson Thrift Kate Perrin Brook Vink CJ Hager Consultant - Business Business Development Director, Community Health Development, Form Third Manager, Wood/Patel Policies, Vitalyst Health Foundation Michael Phalen Jacob Zonn, Vice Chair Partner, Lewis Roca Senior Planner, Tiffany & Rothberger Christie LLC Bosco, P.A. 5 City of Tempe A robust team of people were instrumental in making this AzTAP a success. ULI Arizona gratefully acknowledges the Tempe Economic Development Department as lead for this project in addition to the following individuals who serve the City of Tempe as professional staff for being superb partners and for their enthusiasm and commitment. ULI Arizona is grateful to the Tempe City Council for their dedication of leadership and support. City of Tempe Council City of Tempe Staff Mark Mitchell, Mayor Andrew Ching, City Manager Lauren Kuby, Vice Mayor Donna Kennedy, Economic Development Jennifer Adams, Councilmember Director Robin Arredondo-Savage, Councilmember Jill Buschbacher, Economic Development Program Manager Arlene Chin, Councilmember Maria Laughner, Economic Development Randy Keating, Councilmember Program Manager Joel Navarro, Councilmember Chad Weaver, Community Development Director Ryan Levesque, Deputy Community Development Director Ambika Adhikari, Principal Planner Shauna Warner, Neighborhood Services Director Robert Yabes, Transportation Principal Planner Vanessa Spartan-Platt, AICP, Transportation Planner Dr. Braden Kay, Sustainability Director 6 ULI AzTAP Tempe Focus: Tempe has a vibrant and successful economy and employs innovative strategies to remain competitive. With low vacancy rates and high rents, the City is thoughtful with areas for redevelopment. The Innovation Hub Initiative was approved by Tempe City Council on March 1, 2018. It is an economic development initiative to enhance key employment corridors to promote new investment, job creation, and placemaking that attracts and retains a quality workforce. Eight hubs were identified, and the Smith Industrial Innovation Hub was selected for the pilot project. The ULI Arizona Technical Assistance Panel focused on the long-term (re) development prospects of the Smith Industrial Innovation Hub without compromising industrial land uses. 7 About the Smith Innovation Hub The City of Tempe maintains its successful economy through creative strategies to compete as an education and technology center and a vibrant place to live. City officials understand that solving complex challenges now in its urban core are important to the community’s future resilience and quality of life. While the real estate market inTempe boasts low vacancy rates, the flipside is rents are on the rise. Through a number of targeted initiatives, the City is looking at ways to proactively address redevelopment through an innovation ecosystem designed to maintain affordability for local entrepreneurs and residents, multimodal transportation, seamless connectivity, and strong workforce talent On March 1st, 2018 Tempe City Council approved the Innovation Hub Initiative. Innovation Hubs are key employment corridors where the City will attract /grow employment, redevelopment, creativity, connectivity, and bring educators and businesses together to grow talent pipelines. With eight (8) Innovation Hubs identified in the community, the Smith Innovation Hub (SIH) is a pilot project area where the City will support density and urban mixed-use projects that include some residential. The SIH is approximately 302 acres (1/2 square mile) with mostly light industrial and office uses. It is bounded by Rio Salado Parkway, Loop 101, University Drive and McClintock Drive. It was selected for the pilot area because of its unique innovation ecosystem near current and planned transit investments, adjacency to the ASU Novus Innovation Corridor and other amenities, and variety of uses already in place. Most of the buildings were constructed between 1950 and 1970 and the area was known for industrial uses. Currently, SIH is comprised of 234 companies and 4,700 employees representing high-tech manufacturing, construction, transportation, distribution, consumer services (mainly 8 automotive), retail, and advanced business service sectors. More than a third of commercial space in the area is currently occupied with non-industrial retail and office users. Four primary reasons the City chose the SIH for the pilot: 1. It is in an Opportunity Zone and has proximity to major redevelopment and investment with Rio 2100 under construction directly north of SIH bringing 4,000 new jobs, and ASU Novus Innovation Corridor redeveloping 335 acres to the west; 2. Its adjacency to the proposed Street Car alignment on the northern boundary connecting SIH to ASU’s Novus Innovation Hub, Downtown Tempe to the west and Mesa to the east; 3. Its ability to meet future need for more commercial space of all types in Tempe as vacancies vary between 4% and 8% citywide; and 4. Address the need for connectivity between area to the south, SIH, and Tempe Marketplace and create an innovation district described in Apache Character
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